Memphis' Division of Housing and Community Development may ask for a $25 million loan from the city's Capital Improvement Program budget for improvements to the Mid-South Fairgrounds and Liberty Bowl Memorial Stadium, including demolition of the Mid-South Coliseum and installation of new luxury suites and JumboTron video screens.

HCD director Robert Lipscomb said Tuesday the loan would be repaid through increased retail sales at a planned "urban retail village" on the fairgrounds site.

"It's a short-term loan until the other revenue sources come through," Lipscomb said during a briefing to the City Council.

But several council members questioned the wisdom of approving such a large loan — $25 million is more than one-third of the city's CIP budget for the next fiscal year — without first studying what type of retail demand the fairgrounds could support.

"The total cost is $25 million and our entire CIP budget will only be $65 million, which must include necessities such as fire trucks, police cars and equipment, and road paving," said councilman Jim Strickland. "The proposal calls for the city's budget being reimbursed by the fairgrounds retail, and we have not even evaluated the potential for such retail and the council has not approved any such plan."

Councilman Kemp Conrad also questioned the appropriateness of funding amenities such as video screens and stadium suites when many families are struggling just to make ends meet.

"I doubt that the 10 percent of Memphians that are unemployed will be happy to hear the city is considering spending scarce tax dollars on luxury sky boxes and million-dollar JumboTrons," Conrad said. "These priorities are misplaced and out of touch with the needs of everyday Memphians.

Lipscomb said a study of the retail potential at the fairgrounds was under way and would likely be completed by April.

He said he proposed the $25 million loan so that work could get completed in time for the next football season.

In addition to two JumboTrons and suite upgrades at the stadium, the money would be used to demolish the Mid-South Coliseum, improve stadium lighting, fund streetscape improvements, paint the exterior of the stadium and make other "cosmetic upgrades."

On another front, Lipscomb told council members that stabilizing the ground beneath The Pyramid, the shuttered sports arena Downtown, will cost about $5.2 million.

"We think that is pretty low compared to what we thought it would be," said Lipscomb.

Lipscomb said the city will seek proposals to determine how much it would cost to retrofit and stabilize the actual structure.

"We don't know how much it will cost," said Lipscomb. "We think it could be $15 million to $20 million but we don't know."

Last month, Lipscomb and Mayor A C Wharton said a deal to lease The Pyramid to Bass Pro Shops was in "serious jeopardy" because of Bass Pro Shops' concerns about seismic issues and a state requirement to adhere to tougher building codes.

The city has committed to providing Bass Pro Shops with $63 million to help make the redevelopment plan possible. The total cost to the city for The Pyramid and a plan to redevelop the nearby Pinch District is about $100 million.